Solution-What will the total contribution margin be

What will the total contribution margin be

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Reference no: EM133031611

Question - Sandhill Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products:

	Chairs	Tables
Selling price per item	$71.00	$88.00
Variable cost per item	53.00	9.00
Contribution margin per item	$18.00	$19.00
Machine hours per item	1.60	1.60

Sandhill has 968 machine hours available each month. The demand for chairs is 630 units per month and the demand for tables is 410 units per month. If Sandhill allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?

a. $11300

b. $10890

c. $11495

d. $19130

Reference no: EM133031611

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What will the total contribution margin be

Reference no: EM133031611

Reference no: EM133031611

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